Peak 65

Peak 65

March 2, 2023

There is a historical surge coming that America has never witnessed before. And it’s coming our way soon. Peak 65 will be here next year. Let us explain.

In a historical precedent, the United States will have more 65-year-olds retiring – the traditional age of retirement – than ever before. Currently, we have 10,000 people turning 65 every day. This number will increase to more than 12,000 a day.1 By 2024 according to the U.S. Census, we will have reached the summit.

Enter Peak 65, stage left.

Why is this a problem you ask? Well for one, Social Security is having an issue or two. Social Security funds are running out and “facing a shortfall of $16.8 trillion in present value through 2094 and $53 trillion over an infinite horizon.”2 According to the Social Security Trustees, Social Security funds may be exhausted and unable to finance full benefits in 2035.3 The combination of these two factors can really shake up your retirement plans.

Another issue in this cast of characters is the fact that pensions have gone the way of the dinosaur in recent decades. Instead of employer-provided pensions, “Americans have become overly reliant on Social Security”4, which was only “designed to replace about 40% of pre-retirement income for the average worker”.5 But in today’s current climate, social security is increasingly depended on more and more by people because other sources of protected lifetime income don’t exist for them.6

Enter annuities, stage right. 

If none of these concerns concern you, congratulations! However, if any of them ring an alarm as you think about your future once the retirement bell sounds, this is where the value of an annuity solution could benefit you. The Center for Retirement Research at Boston College estimates “that when the insurance value of annuities is taken into consideration, …the wealth equivalence measure suggests that everyone gains from purchasing annuities”5 One strategy to help protect your retirement income and capture your maximum Social Security benefits would be to use an annuity as a bridge income. Simply put, a bridge income refers to the in-between time of when a person stops working and when Social Security benefits kick in, either at their full retirement age or just above it. For Example, claiming Social Security at age 70 vs age 62 by adding the protected income of an annuity of your choice, could help close the eight-year gap and gain additional protected income that could last the rest of a person’s lifetime.

Take a bow, curtain closes.

Whether you will be part of the Peak 65 or not, getting to retirement is half the battle. Making sure you get there with enough funds to maintain your standard of living and then some is another. Now you know, and now’s the time to look at where you are and where you want to go.

KSKJ Life offers an entire suite of annuity products to choose from to fit your lifestyle and needs. Fill out the form below to explore your annuity options and start protecting what you worked so hard for.


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